Fino Payments Bank has clarified that it has not evaded Goods and Services Tax (GST) following the arrest of its Managing Director and Chief Executive Officer, Rishi Gupta, by the Directorate General of GST Intelligence (DGGI).
The arrest is linked to an ongoing investigation into alleged irregular money flows and GST-related issues involving certain third-party programme managers and payment intermediaries. However, the bank has strongly denied any wrongdoing, stating that the case does not concern its own GST filings or compliance record.
In an official statement, Fino Payments Bank said it has consistently followed all regulatory and tax requirements. The lender also rejected reports linking it to betting or online gaming activities, clarifying that it does not promote or facilitate such businesses.
Following Gupta’s arrest, the bank appointed its Chief Financial Officer as interim head and assured customers and investors that daily operations continue as normal. It said there has been no disruption to account services, transactions or business volumes.
The development initially triggered sharp volatility in the bank’s share price, though the stock recovered partially after the company issued clarifications.
Industry bodies, including the Payments Council of India, have raised concerns about the implications of enforcement action against senior executives of regulated financial institutions. Meanwhile, Union Finance Minister Nirmala Sitharaman has indicated that the matter will be reviewed.
Despite the controversy, the bank maintained that its compliance framework remains strong and that the investigation pertains to external entities rather than the institution itself.
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